Allianz UK has detected more than £92.6 million in fraudulent insurance activity during the first half of 2025, marking a 34% increase compared with £68.9 million in the same period last year. The insurer said it identified more than 15,800 instances of fraud across personal, commercial and specialty lines. For insurance brokers, these figures underscore the need for robust fraud detection strategies and proactive client education. As fraud schemes grow more sophisticated, brokers play a critical frontline role in helping clients navigate evolving risks and ensuring claims integrity across all segments of the market.
Fraud trends intensify
The rise reflects persistent challenges across the market. Allianz highlighted continued pressure from ghost broking schemes, where criminal gangs sell fraudulent policies, often targeting vulnerable customers such as gig economy and delivery drivers. The schemes have grown more sophisticated, with multiple policy amendments and short-term policy manipulation used to avoid detection.
Other emerging patterns included exaggerated and fabricated non-tariff personal injury claims, where fraudsters seek higher payouts than those available under fixed-tariff whiplash rules. Allianz also reported a surge in "ballooning" claims, which start as modest losses before rapidly expanding once liability is admitted.
Technology and partnerships
To counter these threats, Allianz has expanded its use of machine learning, voice analytics and data enrichment tools. Its latest partnership with US-based Carpe Data will specifically target suspect personal injury claims, complementing existing work with technology firm Clearspeed.
Ben Fletcher, director of fraud at Allianz UK, said fraud is not only a financial drain on insurers but also undermines customer trust.
"From inflated claims to calculated deception, fraudsters are evolving – but so are we. Every time we detect fraudulent activity, we are standing up for our honest customers," he said.
Beyond technology, Allianz said it is leaning heavily on collaboration with brokers to identify irregularities earlier in the process. With brokers often on the frontline of customer interaction, insurers argue their role is critical in spotting ghost broking activity, validing client information and flagging suspicious claim behaviour.
Insurance experts said Allianz's figures underscore a wider industry trend. Fraud remains one of the most significant hidden costs in UK insurance. Rising detection levels suggest investments in counter-fraud capabilities are paying off, but also highlight the persistent ingenuity of organised fraud rings.
